Chinese Steel Firm to Build 10 Mtpa Steel Plant in Philippines

SEATTLE (Scrap Monster): The Chinese steel company Panhua Group Co Ltd announced its decision to build new integrated steel manufacturing plant in Philippines. The plant will be set up at the Phividec Industrial Estate of the Misamis Oriental Special Economic Zone. The company anticipates investment of nearly $3.5 billion.

The memorandum of understanding (MoU) was signed between between Panhua Chairman Xinghua Li, PHIVIDEC Industrial Authority Chief Executive and Administrator Franklin M. Quijano, and Philippine Economic Zone Authority (PEZA) Deputy Director General Tereso O. Panga on Nov 20, 2018. The announcement to this effect was made by Trade Secretary Ramon Lopez at the beginning of the two-day visit of the Chinese premiere to the country.

Meantime, Lopez noted that the MoU testifies the strengthened relationship between Philippines and China. Further, he hoped that the integrated steel plant will be able to meet the growing domestic and external market demand.

The proposed project comprises of a port, an integrated steel mill, an industrial park and other downstream industries, which will be implemented in three phases. It requires to obtain a PEZA registration and an Environmental Compliance Certificate from the Department of Environment and Natural Resources, prior to commencement of construction works.The project is expected to take at least six to seven years to complete and will generate nearly 50,000 jobs in the region. The steel mill will have a capacity of 10 million tons.